CONTENTS Highlights... · 2019-03-01 · CONTENTS Company Information ... Mr. Imran Ahmed Javaid Syed Maqbool Ali Mr. Muhammad Baqar Jafferi Mr. Zafar Asim ... revision will be finalized

CONTENTS

Company Information...........................................................................

Directors’ Report....................................................................................

Auditors’ Review Report........................................................................

Condensed Interim Statement of Financial Position..............................

Condensed Interim Statement of Profit or Loss.....................................

Condensed Interim Statement of Comprehensive Income.....................

Condensed Interim Statement Cash Flows ............................................

Condensed Interim Statement of Changes in Equity.............................

Notes to the Condensed Interim Financial Statements..........................

...........................................................................................

2

3

4

5

6

7

8

9

10

16

COMPANY INFORMATIONExecutive Directors : Mr. Ishtiaq Ahmed - Chief Executive Officer

Non-Exective Director : Mr. Ghazanfar Baber Siddiqi - Chairman, Board of DirectorsMr. Imran Ahmed JavaidSyed Maqbool AliMr. Muhammad Baqar JafferiMr. Zafar Asim

Independent Director : Mr. Aziz -ul-Haque

Audit Committee : Mr. Aziz -ul-Haque (Chairman)Syed Maqbool Ali (Member)Mr. Imran Ahmed Javaid (Member)

Human Resources & Remuneration Committee : Mr. Aziz-ul-Haque - ChairmanSyed Maqbool Ali (Member)Mr. Ishtiaq Ahmed -(Member)

Auditors : C-88, Ground Floor, KDA Scheme No. 1, Main KarszaRoad, Opp. Martime Museum Karachi.

Company Secretary : Mr. Muhammad Hanif German

Chief Financial Officer : Mr. S.M. Raza

Tax Advisor : Sharif & Co. Advocates

Legal Advisor : A. K. Brohi & Co. (Advocates)

Bankers : Habib Bank LimitedStandard Chartered Bank Pakistan LimitedMeezan Bank LimitedUnited Bank LimitedBank Al-Falah LtdSilk Bank LimitedNIB Bank LimitedSummit Bank LimitedFaysal Bank LimitedMCB Bank Limited

Registered Office : Finance & Trade CentreBlock-A, 8th Floor,Shahrah-e-Faisal, Karachi

Shares Registrar & Transfer Agent : BMF Consultants Pakistan (Private) LimitedAnum Estate Building, Room No. 310 & 311,3rd Floor, 49, Darul Aman Society,Main Shahrah-e-Faisal, adjacent to Baloch Colony Bridge,Karachi 75350, Pakistan.

Factory Office : H/20 & H/26, S.I.T.E.,Kotri, District Dadu,Sind, Pakistan

Website : www.yousufdewan.com

02 HALF YEARLY REPORT

By and under Authority of the Board of Directors LO-MY LORD IS INDEED HEARER OF PRAYER (HOLY QURAN)

DIRECTORS’ REPORT

IF YE GIVE THANKS, I WILL GIVE YOU MORE (HOLY QURAN)

IN THE NAME OF ALLAH; THE MOST GRACIOUS AND MERCIFUL

Dated: February 26, 2019

The Board of Directors of your Company is pleased to present unaudited condensed interim financial statements for the half year ended December 31, 2018 in compliance with the requirements of section 237 of the Companies Act, 2017 and code of corporate governance issued by Securities and Exchange Commission of Pakistan.

Operating results (Factory Shutdown):Company’s net sales during the current as well as in the comparative period remained nil due to closure of operations. The Company, for the time being, has suspended its manufacturing operations since December 2015 which could not be resumed due to adverse scenario faced by the industry, lesser market demand and working capital constraints.

The auditors of the Company have expressed adverse conclusion in their review report on going concern assumption due to closure of operations, default in repayment of installments of restructured liabilities and related non-provisioning of mark-up and provision for doubtful debts as explained in their review report. The condensed interim financial statements have been prepared using going concern assumption as the company has approached its lenders for further restructuring of its liabilities, which is in process. Management is hopeful that such revision will be finalized soon which will enable the company to resume its operations. Management continuously assesses the recoverability of trade debts and provisions are made accordingly.

Future OutlookManagement is endeavoring to resume the production of the company as soon as the situation in near future improves, restructuring of the company is finalized and sufficient working capital is provided. However, some initiatives from the government are also needed in order to make the textile industry sustainable by reducing the cost of doing business, especially smooth supply of gas at affordable tariff.

ConclusionIn conclusion, we bow beg and pray to Almighty Allah, Rahman-o-Rahim, in the name of our beloved Prophet Muhammad (Peace be upon him) for the continued showering of his blessings, Guidance, strength, health and prosperity to us, our company, country and nation, and also pray to Almighty Allah to bestow peace, Harmony, brotherhood and unity in true Islamic spirit to whole of Muslim Ummah; Ameen: Summa Ameen

Ishtiaq Ahmed

Chief Executive Officer

Imran Ahmed Javed

Director

03HALF YEARLY REPORT

INDEPENDENT AUDITOR’S REVIEW REPORTTo the members of Dewan Textile Mills LimitedReport on review of Interim Financial Statements

& co.FARUQ ALI & CO

CHARTERED ACCOUNTANTS

222-A , Karach i Memon Cooperative Housing SocietyJustice Inaumullah Road,Near Hill Park, Karachi-74800.E-mail: [email protected]

Telephone

Fax

:::::

(021) 34301966(021) 34301967(021) 34301968(021) 34301969(021) 34301965

Dated: February 26, 2019Place: Karachi CHARTERED ACCOUNTANTS

IntroductionWe have reviewed the accompanying condensed interim statement of financial position of Dewan Textile Mills Limited as at 31 December 2018 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity, and condensed interim statement of cash flows, and notes to the financial statements for the six-month period then ended (here-in-after referred to as the “interim financial statements”). Management is responsible for the preparation and presentation of this interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these interim financial statements based on our review.

Scope of reviewWe conducted our review in accordance with the International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”. A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for adverse conclusiona) The condensed interim financial statement for the period ended 31 December 2018 have been prepared

on going concern assumption despite of the fact that the Company incurred loss after taxation of Rs.286.709 million and as of that date it has negative revenue reserves of Rs.3,488.692 million which resulted in negative equity of Rs.2,207.049 million and its current liabilities (including the effect of non-provided markup and restructured liabilities classified under non-current liabilities) exceeded its current assets by Rs.5,653.478 million and total assets by Rs.3,913.336 million. In previous years, the Company defaulted in repayment of installments of restructured liabilities, hence as per terms of restructuring, the entire restructured liabilities of Rs.2,925.634 along with markup of Rs.1,621.421 million (eligible for waiver outstanding as of date of restructuring) have become immediately payable, therefore provision for markup should be made in these financial statements. Further, the Company’s manufacturing operations has been suspended since December 2015 and could not been resumed till the date of this report. These conditions lead us to believe that going concern assumption used in preparation of this condensed interim financial statements is inappropriate; consequently, the assets and liabilities should have been stated at their realisable and settlement amounts respectively.

b) The Company has not made provision of markup for the period amounting to Rs.27.497 million (up to the period ended 31 December 2018: Rs.439.955 million) (refer note 11) on account of restructuring proposal offered to the lenders. In our opinion, since the proposal has not been accepted by the lenders so far and the lenders, instead of accepting the restructuring proposal, have preferred filing suits against the Company, therefore the provision of mark-up should be made in these financial statements. Had the provisions of mark-ups, including the mark-up discussed in preceding paragraph, been made in the condensed interim financial statements, the loss after taxation for the period would have been higher by Rs.1,648.918 million and markup payable would have been higher and shareholders' equity would have been lower by Rs.2,061.376 million.

c) The trade debts amounting to Rs.231.346 million are past due and impaired whereas the management has considered the same as good, therefore provision against these debts should have been made in these condensed interim financial statements. Had the provision been made, the loss after taxation would have been higher, trade debts and shareholders’ equity would have been lower by Rs.231.346 million.

Adverse ConclusionOur review indicates that, because of the significance of the matters discussed in paragraph (a) to (c) above, these condensed interim financial statements are not prepared, in all material respects, in accordance with approved accounting standards as applicable in Pakistan.

Other mattersThe figures of the condensed interim statement of profit or loss and other comprehensive income for the three months period ended 31 December 2018 and 31 December 2017 have not been reviewed and we do not express a conclusion thereon.

The engagement partner on the review engagement resulting in this independent auditors’ review report is Muhammad Faisal Nini.


CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2018 (Un-audited) (Audited)

31 December 30 June

2018 2018---------- (Rupees) ----------

EQUITY AND LIABILITIES

SHARE CAPITAL AND RESERVES

Authorised share capital 50,000,000 (June 2018: 50,000,000) Ordinary shares of Rs. 10/- each 500,000,000

Issued, subscribed and paid-up share capital 460,646,090

Revenue reserves (3,228,889,004)

Capital reserves

Surplus on revaluation of property, plant and equipment 841,020,595

(1,927,222,319)NON-CURRENT LIABILITIES

Long term financing 163,188,400

Deferred taxation 206,485,112

369,673,512CURRENT LIABILITIES

Trade and other payables 179,386,866

Mark-up accrued 744,028,436

Short term borrowings 586,010,566

Liability for staff gratuity 50,808,126

Unclaimed dividend 254,206

Current and overdue portion of long term financing 2,930,630,585

4,491,118,785

CONTINGENCIES AND COMMITMENTS --2,933,569,978

ASSETS

NON-CURRENT ASSETS

Property, plant and equipment 1,805,068,853

Long term investment --

Long term deposits 12,012,134

1,817,080,987CURRENT ASSETS

Stores and spares 48,924,029

Stock in trade

Notes

5

6

7

8

9

10 706,044,419

Trade debtors - Unsecured 300,744,221

Advances - Considered good 2,506,044

Short term deposits and other receivable 4,120,116

Taxes recoverable - Net 45,675,889

Cash and bank balances 8,474,273

1,116,488,991

500,000,000

460,646,090

(3,488,691,806)

820,996,857

(2,207,048,859)

166,476,740

188,612,266

355,089,006

180,936,038

835,456,829

586,010,566

50,808,126

254,206

2,930,630,585

4,584,096,350

--2,732,136,497

1,728,129,987

--

12,012,134

1,740,142,121

44,251,288

655,612,675

231,345,637

2,533,453

4,120,116

45,711,836

8,419,371

991,994,376

2,732,136,497 2,933,569,978

The annexed notes form an integral part of these condensed interim financial statements.

Ishtiaq Ahmed


S.M. Raza

Chief Financial Officer

Imran Ahmed Javed

Director


CONDENSED INTERIM STATEMENT OF PROFIT OR LOSSFOR THE HALF YEAR ENDED DECEMBER 31, 2018

201831 Dec2017Note

Half Year Ended Quarter Ended31 Dec2018

31 Dec31 Dec2017

-------------- (Rupees) --------------

Sales - Net

Cost of sales

Gross loss

Operating expenses

Administrative and general expenses

Operating loss

Finance cost 11

Other charges

Other income

Loss before taxation

Taxation

- Current

- Deferred

Loss for the period

Loss per share - Basic and diluted12

--

(84,653,319)

(84,653,319)

(3,369,952)

(88,023,271)

(106,142,176)

(104,050,442)

516,503

(209,676,115)

(297,699,386)

--

10,990,009

10,990,009

(286,709,377)

(6.22)

--

(96,345,816)

(96,345,816)

(4,794,462)

(101,140,278)

(103,248,575)

(95,251,078)

--

(198,499,653)

(299,639,931)

--

13,019,128

13,019,128

(286,620,803)

(6.22)

--

(43,000,649)

(43,000,649)

(2,227,933)

(45,228,582)

(53,786,628)

(104,050,442)

--

(157,837,070)

(203,065,652)

--

5,495,005

5,495,005

(197,570,647)

(4.28)

--

(46,730,990)

(46,730,990)

(2,877,028)

(49,608,018)

(51,801,720)

(95,251,078)

--

(147,052,798)

(196,660,816)

--

6,292,579

6,292,579

(190,368,237)

(4.13)


Ishtiaq Ahmed


S.M. Raza


Imran Ahmed Javed

Director


Half Year Ended Quarter Ended

31 Dec2018

31 Dec2017

31 Dec2018

31 Dec2017

CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOMEFOR THE HALF YEAR ENDED DECEMBER 31, 2018

-------------- (Rupees) --------------(Restated) (Restated)

Loss for the period

Other comprehensive income:

Effect of change in tax rates on balance of

revaluation on property, plant and equipment

Total comprehensive loss for the period

(286,709,377)

6,882,837

(279,826,540)

(286,620,803)

7,750,779

(278,870,024)

--

(197,570,647)

(197,570,647)

(190,368,237)

--

(190,368,237)


Ishtiaq Ahmed


S.M. Raza


Imran Ahmed Javed

Director


CONDENSED INTERIM STATEMENT OF CASH FLOWSFOR THE HALF YEAR ENDED DECEMBER 31, 2018

31 December 2018

31 December 2017

-------------- (Rupees) --------------CASH FLOWS FROM OPERATING ACTIVITIES

Loss before taxation

Adjustment for non-cash and other items:

Depreciation / amortisation expense 8.1

Provision for doubtful debts

Provision for obsolete stock

Provision for slow moving stores

Gain on sale of fixed assets

Unwinding of discount

Finance cost

Cash outflows before working capital changes

Working capital changes

(Increase) / decrease in current assets

Stores and spares

Trade debtors

Advances

Short term deposit and other receivable

Increase / (decrease) in current liabilities

Trade and other payables

Short term borrowings

Cash generated / (used in) from operations

Payments for:

Income tax refund / (paid) - Net

Finance cost paid

Net cash generated from / (used in) operating activities

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds against sale of fixed assets

Net cash generated from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

Long term financing paid

Net increase / (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the periodCash and cash equivalents at the end of the period

(297,699,386)

76,255,369

49,228,551

50,431,744

4,390,147

(516,503)

5,786,547

100,355,629

(11,767,902)

282,594

20,170,033

(27,409)

--

20,425,218

1,549,172

--

1,549,172

10,206,488

(35,947)

(8,927,236)

1,243,305

1,200,000

1,200,000

(2,498,207)

(54,902)

8,474,2738,419,371

(299,639,931)

86,409,775

41,944,344

53,306,734

--

--

5,342,544

97,906,031

(14,730,503)

--

16,324,304

--

(12,155)

16,312,149

544,979

8,350,000

8,894,979

10,476,625

(71,666)

(6,571,574)

3,833,385

--

--

(2,498,208)

1,335,177

6,128,6077,463,784


Notes

Ishtiaq Ahmed


S.M. Raza


Imran Ahmed Javed

Director


CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITYFOR THE HALF YEAR ENDED DECEMBER 31, 2018

----------------------------------------------------------------------- (Rupees) -----------------------------------------------------------------------

Issued,

subscribed

and paid-up

share capital

Revenue reserves Capital reserves

Total capital

reserves

Total equityGeneral

reserve

Accumulated

losses

Total revenue

reserves

Surplus on

revaluation

of property,

plant and

equipment

Unrealised

gain due to

change in

fair value of

investment

Balance as on 1 July 2017 - As reported 460,646,090 333,000,000 (2,862,140,556) (2,529,140,556) 57,358,822 -- 57,358,822 (2,011,135,644)

Impact of change in accounting policy - Note 4.2 -- -- (158,518,938) (158,518,938) (57,358,822) 894,025,745 836,666,923 678,147,985

Balance as on 1 July 2017 - As restated 460,646,090 333,000,000 (3,020,659,494) (2,687,659,494) -- 894,025,745 894,025,745 (1,332,987,659)


Loss for the period -- -- (286,620,803) (286,620,803) -- -- -- (286,620,803)

Other comprehensive income -- -- -- -- -- 7,750,779 7,750,779 7,750,779

-- -- (286,620,803) (286,620,803) -- 7,750,779 7,750,779 (278,870,024)

Incremental depreciation transferred

from surplus on revaluation of property,

plant and equipment - Net of tax -- -- 30,377,965 30,377,965 -- (30,377,965) (30,377,965) --

Balance as at 31 December 2017 - As restated 460,646,090 333,000,000 (3,276,902,333) (2,943,902,333) -- 871,398,560 871,398,560 (1,611,857,683)

Balance as on 1 July 2018 460,646,090 333,000,000 (3,561,889,004) (3,228,889,004) -- 841,020,595 841,020,595 (1,927,222,319)


Loss for the period -- -- (286,709,377) (286,709,377) -- -- -- (286,709,377)

Other comprehensive income -- -- -- -- -- 6,882,837 6,882,837 6,882,837

-- -- (286,709,377) (286,709,377) -- 6,882,837 6,882,837 (279,826,540)

Incremental depreciation transferred

from surplus on revaluation of property,

plant and equipment - Net of tax -- -- 26,906,575 26,906,575 -- (26,906,575) (26,906,575) --

Balance as at 31 December 2018 460,646,090 333,000,000 (3,821,691,806) (3,488,691,806) -- 820,996,857 820,996,857 (2,207,048,859)

The annexed notes form an integral part of these condensed interim financial statement.

Ishtiaq Ahmed


S.M. Raza


Imran Ahmed Javed

Director


NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS - (Un-audited)FOR THE HALF YEAR ENDED DECEMBER 31, 20181 STATUS AND NATURE OF BUSINESS

Dewan Textile Mills Limited ('the Company') was incorporated in Pakistan on 16 April 1970 as a public limited company and is listed on the Pakistan Stock Exchange. The principal activity of the Company is manufacturing and sale of yarn. However, the Company has suspended its manufacturing operations since December 2015.

The geographical location and address of Company's business units including plant is as under:

- Company's registered office is located at 8th Floor, Block-A, Finance & Trade Centre, Shahrah-e-Faisal, Karachi.

- Company's production plant is situated at H/20 & H/26, S.I.T.E., Kotri, District Jamshoro, Sindh, Pakistan.

2 GOING CONCERN ASSUMPTIONThe financial statements of the Company for the year ended 31 December 2018 reflect that the Company has sustained a net loss after taxation of Rs.286.709 million (June 2018: Rs.601.985 million) and as of that date the Company's negative revenue reserves of Rs.3,488.692 million (June 2018: Rs.3,228.889 million) have resulted in negative equity of Rs.2,207.049 million (June 2018: Rs.1,927.222 million) and its current liabilities (including the effect of non-provided mark-up) exceeded its current assets b y Rs.5,653.478 million (June 2018: Rs.5,408.508 million) and total assets by Rs.3,913.336 million (June 2018: Rs.3,591.427 million). Further the Company's short term borrowing facilities having limit to the extent of Rs.315 million have expired and not been renewed. The Company is facing litigations with three of its lenders for repayment of liabilities through attachment and sale of Company's hypothecated / mortgaged properties and out of them one of the lenders had also filed winding up petition under Section 305 of the repealed Companies Ordinance, 1984. The Company has defaulted in repayment of its restructured liabilities due to liquidity crunch faced by the Company following the adverse conditions of overall textile industry. Accordingly, the entire restructured liabilities along with mark-up eligible for waiver (as disclosed in note 14.3 of the annual financial statements) have become immediately repayable. The Company has suspended its manufacturing operations since December 2015. These conditions indicate the existence of material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern, therefore, the Company may not be able to realise its assets and discharge its liabilities during the normal course of business.

The condensed interim financial statements have been prepared on going concern assumption as the Company approached its lenders for further restructuring of its liabilities, which is in process. Company is hopeful that such restructuring will be effective soon and will streamline the funding requirements of the Company which will ultimately help the management to resume the operations with optimum utilisation of production capacity. As the conditions mentioned in the foregoing paragraph are temporary and would reverse therefore, the preparation of condensed interim financial statements using going concern assumption is justified.

3 BASIS OF PREPARATION3.1 These condensed interim financial statements of the Company for the six months

ended 31 December 2018 have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards applicable in Pakistan for interim financial reporting comprise of International Accounting Standard (IAS) 34, "Interim Financial Reporting", issued by the International Accounting Standards Board (IASB) as notified under the Companies Act, 2017 and provisions of and directives issued under the Companies Act, 2017. Where provisions of and directives issued under the Companies Act, 2017 differ from the requirements of IAS 34, the provisions of and directives issued under the Companies Act, 2017 have been followed.


3.2 These condensed interim financial statements do not include all the information and disclosures required in the annual audited financial statements, and should be read in conjunction with the Company's annual audited financial statements for the year ended 30 June 2018.

3.3 The figures included in the condensed interim profit and loss account for the quarters ended 31 December 2018 and 2017 and in the notes forming part thereof have not been reviewed by the auditors of the Company, as they have reviewed the accumulated figures for the half years ended 31 December 2018 and 2017.

4 SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES4.1 The accounting policies and methods of computation adopted and applied in the

preparation of these condensed interim financial statements are consistent with those followed in the preparation of the Company's annual financial statements for the year ended 30 June 2018.

4.2 Change in accounting policiesDuring the financial year ended 30 June 2018 Company has changed its accounting policies for investment in associated company and revaluation surplus on property, plant and equipment. The detailed impacts of the said change are more fully explained in note 5.19 of the annual financial statement for the year ended 30 June 2018. The comparative figures in statement of comprehensive income and statement of changes in equity have been restated due to same.

4.3 New standards, amendments and interpretation to published approved accounting and reporting standards which are effective during the half year ended 31 December 2018There are certain amendments and an interpretation to approved accounting and reporting standards which are mandatory for the Company's annual accounting period which began on 1 July 2018. However, these do not have any significant impact on the Company’s financial reporting and, therefore, have not been detailed in these condensed interim financial statements.

In addition to that two new standards (i.e. IFRS 9 and IFRS 15) have become applicable to the Company effective 1 July 2018. Because of these new standards certain changes to the Company's accounting policies have been made in light of the following paragraphs:

- IFRS 9 'Financial instruments' - This standard replaces the guidance in lAS 39. It includes requirements on the classification and measurement of financial assets and liabilities; it also includes an expected credit losses model that replaces the current incurred loss impairment model.

- IFRS 15 'Revenue from contracts with customers' - IFRS 15 replaces the previous revenue standards: lAS 18 Revenue, lAS 11 Construction Contracts, and the related interpretations on revenue recognition.

IFRS 15 introduces a single five-step model for revenue recognition and establishes a comprehensive framework for recognition of revenue from contracts with customers based on a core principle that an entity should recognise revenue representing the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

The changes laid down by these standard do not have any significant impact on these condensed interim financial statements of the Company.


4.4 New standards and amendments to published approved accounting and reporting standards that are not yet effective

There is a new standard, certain amendments and an interpretation to the approved accounting and reporting standards that will be mandatory for the Company's annual accounting periods beginning on or after 1 July 2019. However, these will not have any significant impact on the financial reporting of the Company and, therefore, have not been disclosed in these condensed interim financial statements.

(Un-audited)31 December

2018

(Audited)30 June

2018-------------- (Rupees) --------------5

6

REVENUE RESERVES

General reserve

Accumulated losses

DEFERRED TAXATION

Credit balance arising due to:

- Accelerated tax depreciation

- Revaluation - Net of related depreciation

- Finance lease transactions

Debit balance arising due to:

- Staff gratuity

- Provision for doubtful debts

- Provision for obsolete stock

- Provision for slow-moving stores and spares

- Carried over losses

Deferred tax asset not recognised

333,000,000

(3,561,889,004)

(3,228,889,004)

112,330,811

206,485,112

6,774,931

(15,242,438)

(98,060,312)

(108,027,079)

(2,883,377)

(803,074,967)

(701,697,319)

908,182,431

206,485,112

333,000,000

(3,821,691,806)

(3,488,691,806)

95,618,516

188,612,266

6,567,760

(14,734,357)

(109,067,915)

(119,051,382)

(4,060,407)

(732,931,536)

(689,047,055)

877,659,321

188,612,266

8 PROPERTY, PLANT AND EQUIPMENT

Operating fixed assets 8.1 1,717,824,598 1,794,763,464

Capital work in progress - At cost

Civil works 10,305,389 10,305,389

1,728,129,987 1,805,068,853

8.1 Opening net book value (NBV) 1,794,763,464 1,967,766,364

Disposal (NBV) during the period / year (683,497) (183,353)

Depreciation charged for the period / year (76,255,369) (172,819,547)

Closing net book value (NBV) 1,717,824,598 1,794,763,464

Notes


7 CONTINGENCIES AND COMMITMENTSThere is no material change in the contingencies and commitments since the last audited financial statements for the year ended June 30, 2018.

12 LOSS PER SHARE - Basic and diluted

Loss after taxation (286,709,377) (286,620,803)

Weighted average number of shares 46,064,609

(6.22)

46,064,609

Loss per share - Basic and diluted (Rupees) (6.22)

9 INVESTMENT IN AN ASSOCIATE COMPANY9.1 Associate is an entity over which the Company has significant influence but no

control. Company's investee company is considered to be its associate by virtue of common directorship and its ownership interest of 28.47% in investee company.

9.3 Investment in associated company was made in accordance with the requirement of then effective Companies Ordinance, 1984. As the Company's share of losses exceed its interest in the associate, the Company has discontinued recognising its share of further losses. Market value is based on last available quoted price as of 19 February 2018.

10 STOCK IN TRADEStocks valuing Rs.277.532 million (June 2018: Rs.277.532 million) was pledged with the banks against the finance facilities obtained by the Company. .

11 FINANCE COST AND MARK-UP ACCRUEDIn addition to the non-provisioning of mark-up eligible for waiver as disclosed in note 14.3 of the annual financial statement for the year ended 30 June 2018, Company has not made the provision of mark-up for the period amounting to Rs.27.497 million (up to 31 December 2018: Rs.439.955 million) in respect of borrowings of certain banks who have not yet accepted the restructuring proposal. The management of the Company is quite hopeful that these banks will also accept restructuring proposal in near future. Had the provision been made the loss for the period would have been higher by Rs.439.955 million and accrued mark-up would have been higher and shareholders' equity would have been lower by Rs.439.955 million. The said non-provisioning is departure from the requirements of IAS 23 - 'Borrowing Costs'.


2018


2018

(Audited)30 June

2018

(Audited)30 December

2017

-------------- (Rupees) --------------

-------------- (Rupees) --------------

------- (Number of shares) -------

9.2 Investment in Dewan Salman Fibre Limited - At equity method

Number of shares held

Cost of investment (Rupees)

Fair value of investment (Rupees)

Ownership interest

104,288,773

210,000,000

91,774,120

28.47%

104,288,773

210,000,000

91,774,120

28.47%


13 TRANSACTIONS WITH RELATED PARTIESRelated parties include associated group companies, directors, executives, key management personnel and staff retirement funds. Details of transactions with related parties during the period other than those which have been disclosed elsewhere in these condensed interim financial statements are given below:

14 CORRESPONDING FIGURESIn order to comply with the requirements of International Accounting Standard 34 "Interim Financial Reporting", balance sheet has been compared with the balances of annual financial statements, whereas profit and loss account, statement of comprehensive income, cash flow statement and statement of changes in equity have been compared with the balances of comparable period of immediately preceding financial year.

The comparative figures of the condensed interim statements of comprehensive income and changes in equity have been restated, as more fully explained in note 4.2 to the financial statements.

15 DATE OF AUTHORISATION FOR ISSUEThese condensed interim financial statements were authorised for issue on February 26, 2019 by the Board of Directors of the Company.

16 GENERALFigures have been rounded off to the nearest rupee.


2018


2017-------------- (Rupees) --------------

29,836 120,852Staff retirement benefits

Ishtiaq Ahmed


S.M. Raza


Imran Ahmed Javed

Director




Documents

CONTENTS Highlights... · 2019-03-01 · CONTENTS Company Information ... Mr. Imran Ahmed Javaid Syed Maqbool Ali Mr. Muhammad Baqar Jafferi Mr. Zafar Asim ... revision will be finalized